Logistics parks and ZETs are critical for reducing diesel dependency
The road freight transport market in India is expected to reach Rs.18.89 trillion by 2029, expanding at a compound annual growth rate (CAGR) of ~9.43% during the forecast period.
It was valued at Rs.12.13 trillion in 2023, says a report on “Road Freight Transport Market in India” which has been added to ResearchAndMarkets.com’s offering since 31 Dec 2024.
“India’s road freight transport market is essential for the nation’s economic framework, moving over 70% of the country’s goods,” stressed the report.
However, it is marked by high logistics costs, inefficiencies, and significant fuel consumption, leading to substantial emissions. The industry is transforming through digitization, infrastructure improvements, and alternative fuels, aiming to reduce costs, improve efficiency, and support India’s growing economy through 2029.
Elaborated the report, “India’s road freight transport sector faces a pressing need for cost reduction, with logistics expenses accounting for 14% of GDP https://fieo.org/.
“The sector is heavily reliant on diesel, contributing to high operational costs and emissions. Initiatives like the PM Gati Shakti and Logistics Efficiency Enhancement Program (LEEP) are optimizing logistics through multimodal connectivity and technology upgrades https://www.bseindia.com/.
“The development of 35+ logistics parks and a nationwide emphasis on transitioning to Zero Emission Trucks (ZETs) are critical steps toward reducing diesel dependency, operational costs, and greenhouse gas emissions, paving the way for a sustainable future https://www.nseindia.com/.”
Long-haul freight, typically covering over 400 km, accounts for about 50% of India’s road freight, mainly through national highways. This segment is adopting newer fuel-efficient vehicles and digital freight matching platforms for load optimization.
Short-haul transport, within 100-400 km, is crucial for urban and intercity logistics, especially in sectors like e-commerce and FMCG. Innovative solutions, such as electric trucks for short distances and urban routes, and depot-based charging solutions, are driving growth.
These segments collectively boost India’s logistics efficiency by accommodating the diverse transport needs across the nation.
The report highlights growth opportunities, especially India’s focus on clean energy and efficient logistics presents significant growth opportunities.
“The deployment of ZETs can lower fuel costs by 46%, while the use of multimodal logistics parks and the improvement of warehouse technology enhance operational efficiency,” it said.
Public-private collaborations are enabling the construction of charging stations along major freight corridors, and government incentives like FAME II support the adoption of electric vehicles.
These advancements reduce operational costs, improve environmental standards, and open up avenues for foreign investments in India’s evolving road freight market, said the report.
Key players in the sector are:
Transport Corporation of India (TCI) Limited
Agarwal Packers and Movers Limited
Safexpress Private Limited. Fiinews.com
